0 Replies Latest reply on Apr 14, 2016 5:25 PM by 3006573

    Adding freight and surcharges to purchases at time of shipment.

    3006573

      We currently have a requirement to be able to price the PO at a base price and apply freight and surcharges at time of shipment.  All freight and surcharges are currently maintained in a custom table in the legacy system.  The purchase order is typically placed 6-8 weeks in advance of the actual shipment due to lead times.  We (the buying organization) agree to a base price with the supplier when the order is placed.  We maintain a list of freight and surcharges by supplier.  Those charges can be updated on a month to month basis.  Once a shipment occurs we want the pricing to update with the freight and surcharges.  We thought we could use Advance Pricing Procurement; however, this process calculates the entire line price (base + freight + surcharges) and enters it on the PO.  Having the estimated rates on the PO would lock us into possibly higher costs, if the surcharges drop.  Does anyone else have this situation in their procurement department?  If so, how did you handle it?  We are designing release 12.2.5.

       

      Thank you,

      Amanda Pate

      Nucor Steel SMG